Riau and Pertamina ready to take over CPP oil block from Caltex

A consortium of Riau provincial administration-owned company PT Bumi Siak Pusako and state owned oil and gas company Pertamina is making a final preparation to take over the management and operation of the Coastal Plain Pekanbaru (CPP) oil block from PT Caltex Pacific Indonesia (CPI) when the latter?s contract ends on August 8, next week, Kompas reported on Saturday.

"We are ready to operate the CPP field," said Nawasir Kadir, the deputy senior manager of the consortium PT BSP-Pertamina. He said a number of 125 skilled workers were ready to take over the jobs to operate and manage the CPP field when Caltex left the oil field.

According to Nawsir, Caltex was also still preparing the transfer of the management and operation of the CPP oil block, one of several oil blocks currently operated by the oil giant. He said that Caltex was seen relocating its heavy equipment from the oil block, and at the same time the company also brought in some important equipment into the CPP location.

But he believed that the value of the equipment withdrawn by Caltex was lower than those brought into the CPP oil block. "The withdrawn equipment reaches about US$250,000 in value while those brought into the CPP location could reach $400,000," he added.

Nawsir said that the main priority of the consortium was to maintain the production level at 50,000 barrels per day.

The CPP oil block is part of Caltex Pacific Indonesia?s oil concession areas in Riau. Caltex has to transfer the oil block to a consortium of Pertamina and Riau-owned company in August this year as the government refuses to extend its 20-year contract. The contract actually ended in August last year but the oil giant was given another one year to give new operator more time to prepare for the new job.

At present, the oil block produces 40,000 barrels per day, far lower than 70,000 barrels per day in the previous years. In addition to CPP, Caltex also operates several other oil blocks in the province. (*)